British digital banking giant, Chase UK, has revealed its plans to ban every crypto-linked transaction for customers in the United Kingdom.
According to an email to customers on Tuesday, starting October 16, Chase will decline crypto-related payments made by customers either via their debit card or outgoing bank transfers.
Clamp Down on Rising Crypto-Related Fraud
The bank explained that the latest move is part of its broader efforts to clamp down on the increasing risk of fraudulent schemes that leverage the pseudonymous nature of cryptocurrencies to steal large sums of money from people.
Chase pointed out that its decision to ban crypto-related payments on its platform underscores its commitment to keep customers' funds safe.
A spokesperson for the bank said, "We’re committed to helping keep our customers’ money safe and secure. We’ve seen an increase in the number of crypto scams targeting U.K. consumers, so we have taken the decision to prevent the purchase of crypto assets on a Chase debit card or by transferring money to a crypto site from a Chase account."
Launched in 2021, Chase is a UK subsidiary of the banking behemoth and wealth manager, JP Morgan Chase. The bank has attracted more than 1.6 million users since its launch with its mobile app-based service, predominantly younger and wealthy individuals.
A recent survey by YouGov revealed that a significant amount of Chase's customers are more skeptical of cryptocurrencies while only 18% admit to believing in the potential of digital currencies.
The bank further warned its customers that they risk losing all their money if a crypto transaction is fraudulent, a warning that has been repeated by the UK's Financial Conduct Authority (FCA) multiple times.
The email reads, "If you’d still like to invest in crypto assets, you can try using a different bank or provider instead – but please be cautious, as you may not be able to get the money back if the payment ends up being related to fraud or a scam.
Not the First Time
Chase has now become the latest UK bank to restrict customers' assets to cryptocurrencies, especially as the regulatory landscape in the country remains murky while criminals leverage digital assets to carry out their fraudulent schemes.
Earlier in March, one of the UK's largest cooperative banks, Nationwide, imposed daily and monthly limits on the amount customers can send to crypto exchanges. HSBC, Barclays, and Natwest also took the same action in an effort to protect customers from falling victim to these crypto-related scams.